If you fail to plan, you are planning to fail.

Benjamin Franklin
  • Have you ever wondered if you’re on track for retirement?
  • Have you ever looked at your bank account at the end of the month and wondered where all your money went?
  • Have you ever felt emotional stress as it relates to your finances?

There seems to be this misconception out there that financial planning is only for the wealthy – but the fact of the matter is every single person can benefit from a financial plan.

We all have goals in life, like going on a vacation or saving for our children’s college tuition. We also have concerns in life, like what happens to my family if I pass away, or, if my car breaks down, can I afford the repair?  Financial planning is creating a road map to achieving life’s goals and addressing life’s concerns.

No two financial plans are the same. Throughout your life, some areas will be more important than others. People in their 20’s are probably most concerned with budgeting. People in their 30s and 40s are probably most concerned with insurance as they start to have families. People in their 50s are probably most concerned with retirement as they wind down in their working careers. People in their 60s and beyond are most concerned with estate planning as they get older.

Regardless of your state in life, working with a financial planner is a great way to receive support on your financial journey.

A financial planner’s role is to understand your current situation, envision your future goals, and create a plan to bridge the gap between the two.

There are six elements that can be included in your financial plan:

  • Cash Flow and Budgeting: Creating a plan for how you will spend and save your money, helping you track expenses and manage your finances effectively.
  • Insurance Planning: Evaluating potential risks to determine the amount of insurance coverage needed to protect against financial loss in the event of unexpected circumstances.
  • Tax Planning: Analyzing your financial situation to minimize tax liability and maximize deductions and credits within the limits of the tax code.
  • Investment Planning: Determining the most effective way to allocate your financial resources to achieve long-term goals, considering risk tolerance, time horizon, and investment objectives.
  • Retirement Planning: Creating a savings and investment strategy to ensure you have enough money to support your desired lifestyle when you are no longer working.
  • Estate Planning: Preparing for the distribution of your assets in the event of death or incapacitation ensuring your wishes are carried out and minimizing taxes and legal fees for your heirs.

If you would like more information on getting a financial plan created and the steps you should take, please visit the BPAS U Planning Help Center.

Post Author: BPAS